Take this with a pinch of salt, but according to Eurogamer the situation at id Software has been dramatically altered by Microsoft’s Xbox restructuring. If true, the studio has been stripped to a fraction of its former size and a clutch of newly pitched ideas may already be dead.
What Was Reported
Layoffs And Remaining Staff
Eurogamer reports that an official WARN notice filed in Texas, seen by Game Developer, shows 136 people working for id Software have been let go. That notice reportedly breaks that number down as 96 people from the Texas office and 40 remote staff. Per Eurogamer, that means of the 185 people said to be working for id Software in December 2025, only 49 people remain.
Projects Allegedly Affected
GamesBeat reportedly heard the cuts hit while id Software was "experimenting with ideas about what to make next" after releasing Doom: The Dark Ages and its Revelations expansion. Names of pitched projects allegedly include:
- Fury — a "John Wick-style" original game with "elements of sci-fi, noir, and Louisiana and Chicago gangsters" and a "Gun Fu" concept.
- A new entry in Perfect Dark — a pitch reportedly complicated by a cancelled Perfect Dark reboot in 2025.
- Ironwood — a Westworld-inspired robot survival idea.
- A multiplayer and co-op version of Doom.
GamesBeat also reportedly added that "No one appears to be working on Quake."
The Source & Credibility
Who Said What
The staffing figures come from a WARN filing seen by Game Developer, as reported by Eurogamer. GamesBeat is named as having spoken to former employees who described the cuts as feeling like "a bloodbath." In a LinkedIn post cited by Eurogamer, former principal VFX artist Derek Best said he was "still in shock at how brutal the layoff cuts were" and claimed "collectively decades of knowledge was wiped out of the studio."
Other on-record touches include John Romero offering his sympathies, and a reference to remarks by Xbox boss Asha Sharma about streamlining tool use across Xbox and cutting "vendor spend," which Eurogamer connects to questions about engine strategy at the studio.
Take this with a pinch of salt: the reporting stitches together a WARN notice, insider interviews, and public posts. A WARN notice is a formal legal document, which lends weight to the headcount numbers, but the fate of specific internal projects and the exact roles affected appear to be assembled from conversations and an unverified list.
What It Could Mean
Studio Capability And Focus
If the staff numbers are accurate, Eurogamer suggests the studio’s "ability to make a full-scale game has gone, realistically." That phrasing implies id Software may no longer operate as an independent full-production studio if it is left with fewer than 50 people.
Engine And Support Role Possibilities
The report raises questions about whether id Tech development has been hit, noting claims that many senior, engine-related positions were affected. Eurogamer points out that Asha Sharma talked about streamlining tools and cutting vendor spend, and wonders if id Software could be refocused around tools or a support role. It also flags the apparent oddity of licensing another engine elsewhere in Xbox projects while firing engine staff at id Software.
Potential Support To Other Teams
Eurogamer posits that a likely outcome, if true, is id Software being relegated to a support studio role — for instance, helping MachineGames on a new project. Again, take this with a pinch of salt: this is framed as a plausible interpretation rather than a confirmed plan.
Why This Matters
For fans of Doom and Quake, and for anyone watching how Microsoft reshapes Xbox, the report paints a picture of a decorated studio reduced to a much smaller operation. If true, dozens of senior developers and engine specialists leaving would reshape what id Software can do going forward and could kill or stall several internal ideas — from Fury to a new take on Perfect Dark or a multiplayer Doom.
Again, take this with a pinch of salt: the core staffing numbers rest on a WARN notice, which is solid, but the downstream interpretations about projects and long-term strategy mix formal filings with insider testimony and speculation. If accurate, the changes reported by Eurogamer are a major moment for one of the industry’s most historic developers — and something the games industry will be watching closely.